Derivatives — Congress Introduces Legislation to Clarify Extra-Territorial Reach of Dodd-Frank Swap Rules
Monday, November 14, 2011

Legislation has been introduced in Congress to clarify the applicability of the Dodd-Frank Act swap rules to non-U.S. Persons and for U.S. Persons engaging in swap transactions with non-U.S. Persons.

The extraterritorial application of the Dodd-Frank derivatives rules has been uncertain. Under the proposed Swap Jurisdiction Certainty Act, U.S. registered swap dealers engaging in swap transactions with a non-U.S. Person will not be subject to the Dodd-Frank derivatives rules if each party reports the swap to an SEC registered swap repository. Additionally, non-U.S. persons who register as swap dealers under Dodd-Frank would only be subject to the Dodd-Frank derivatives rules for swaps executed with a U.S. Person and are not required to comply with the Dodd-Frank derivative capital requirements if they are complying with similar requirements in their home country as long as the home country is a signatory to the Basel Accords. Click here to read the proposed legislation.

 

NLR Logo

We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up to receive our free e-Newsbulletins

 

Sign Up for e-NewsBulletins